The total Latin American residential water treatment market was estimated to be $337.2 million in 2009. Brazil and Mexico were the largest markets in 2009. The Brazilian market was valued at $216.2 million, while the Mexican market was valued at $56.6 million in 2009. The Brazilian residential water treatment market is expected to generate revenues of $414.8 million in 2016.

The report “Analysis on Select Global Residential Water Treatment Markets - Global Overview, Latin American Overview, and Brazil” by Verify Markets LLC provides an overview of the Global and Latin American markets. The report identifies and analyzes growth strategies adopted by market players, and also major competitive developments such as R&D initiatives, distribution strategies, etc. The sections include areas like market drivers, restraints, revenue forecasts, market share split by revenue and pricing trends.

Indonesia, Mexico and Argentina are thirsty for bottled water, just as the trend is waning in North America and Europe. Groupe Danone SA reported its bottled water business grew 4.6 percent in the third quarter of 2009, as strong demand in emerging markets offset declining demand in developed countries.

High price and misunderstood benefits by low-income consumers remain important challenges to success:

Mexico is traditionally a price driven market. The relative high cost of the more advanced water treatment systems commonly found in the U.S. is beyond reach for the vast majority of the population. Low-end units, made out of clay, offer the ideal solution for the lower income population. Therefore, foreign manufacturers have to compete in a market where only a limited number of end-users are available. As these countries further expand their economies, more and more people are likely to be able to afford high-end systems.

Boiling is perceived as sufficient water treatment:

People in Mexico grow up being taught that the water from the tap is 'not safe to drink’. Thus, people boil tap-water and it is perceived as sufficient water treatment.

The total market was worth $56.6 million in 2009. Although the global economic downturn has impacted Mexico, long term expectations for the residential water treatment remain promising. The increase in per capita income over the past decade, concern of health and wellness among the population and poor water quality are market drivers in the residential water treatment sector.

High purchasing power:

Mexico's population has more purchasing power than ever with per capita income reaching $14,200 in 2008 according to the central intelligence agency - The world fact book. This wage increase has been the driving force behind the growth, especially in urban areas where 77% of the population lives. The expansion of urban areas and the general acceptance of the modern lifestyle is likely to drive the growth in the point-of-use water treatment equipment market.

Poor water quality and distribution structure:

Water distribution is an issue in Mexico where building lots are often developed without basic resources, such as electricity and water hookups. Many people live without running water. Others in Mexico receive water through some kind of pipe, but, the water is insufficiently treated and not safe for human consumption. The availability of potable water in rural areas is scarce. Even in most metropolitan communities people cannot drink their water. Poor water quality in Mexico will continue to drive the point-of-use water treatment market.

Healthier lifestyles and living standards:

The Mexican point-of-use market has evolved drastically over the past 10 years. A stable economy, in the past, resulted in higher per capita incomes, higher living standards and a growing number of Mexicans shifting to healthier lifestyles. The younger and more educated population is consuming more good quality water than ever creating new market opportunities.

Market Drivers Ranked in Order of Impact (Brazil), 2010-2016

Growth will likely be supported by several factors including advertising and awareness:

Sales of water treatment systems are expected to see substantial growth between 2010 and 2016. Among the most important factors that will contribute to a strong performance over this period are; new product development, aggressive advertising campaigns, a continuing propensity to spend on heath and wellness products, young population and an increasing number of women working outside the home.

Brazil’s economy likely to grow, supporting demand:

Brazil’s impressive economic growth, and a booming commodity sector is receiving worldwide attention. The economic growth is lifting millions of Brazilians into the middle class and making the country a model for the developing world. According to the recently released “National Registry of Employment and Unemployment Report”, Brazil created 932,600 new jobs in the first nine months of 2009, despite the international financial crisis. Brazil's economy is expected to grow at over 5 percent this year. The moderate expansion of economic activity is expected to drive demand for residential water treatment systems.